tag:blogger.com,1999:blog-52960567923417019072024-02-20T08:04:34.226-07:00The Blue HouseRio Rancho real estate, home tips, and totally random stuffAnonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.comBlogger181125tag:blogger.com,1999:blog-5296056792341701907.post-69731136735070332792019-01-15T08:01:00.001-07:002019-01-18T15:36:49.609-07:00Standard or Itemized Deductions<p><span>The Tax Cuts and Jobs Act of 2017 increased the standard deduction to $24,000 for married couples.<span> </span>There will be some instances that homeowners may be better off taking the standard deduction than itemizing their deductions.<span> </span>In the past, homeowners would most likely be better off itemizing but the $10,000 limit of state and local taxes (SALT) adds one more issue to consider.</span></p> <p><span>Let's look at a hypothetical homeowner to see how a strategy that has been around for years could benefit them now even though they haven't used it in the past.<span> </span>The strategy is called bunching; by timing the payments in a tax year so that they can be combined to make a larger deduction.</span></p> <p><span>Let's say that the married couple filing jointly has a $285,000 mortgage at 5% for 30 years that has about $14,000 in interest being paid.<span> </span>The property taxes are $6,000 and they have $4,000 a year in charitable contributions for a total of $24,000 of allowable itemized deductions on Schedule A.</span></p> <p><span><img width="500" height="128" style="width:500px; height:128px; " alt="Standard Itemized.jpg" src="http://www.betterhomeowners.com/image.ashx/CTm9OpK2Gk-nD_9wk9CtHg" processed="true"></span></p> <p><span>Since that deduction amount is the same as the Standard Deduction, there is no monetary advantage one way or the other.<span> </span>However, if the taxpayers were to pay their interest because they must make timely house payments but only pay $2,000 of the 2018 property taxes in December of 2018 and the balance of the $4,000 in January, they transfer part of the deduction into 2019.</span></p> <p><span>Additionally, if they make their intended charitable contribution for 2018 in January of 2019, it makes that deductible on the 2019 return.</span></p> <p><span><span>Since the total deductible amounts paid out in 2018 was $16,000, the taxpayers would have an $8,000 benefit that year from taking the Standard Deduction.<span> </span></span></span></p> <p><span>Assuming they made the same $4,000 charitable contribution in 2019 during the year and paid the house payment and property taxes on time, their total deductions for 2019 would be $32,000 which is $8,000 more than the Standard Deduction.</span></p> <p><span><span>In this example, the taxpayers in 2018 and 2019, would benefit a total of $16,000 in tax deductions by bunching and electing to take the standard deduction one year and itemizing the next.<span> </span></span></span></p> <p><span>This is only an example but if your situation is similar, it might benefit you to consider an alternative when to take the standard deduction and when to itemize.<span> </span>This is a conversation you need to have with your tax professional to see if it would work for you.</span></p> <br> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-22705760650505092192019-01-08T08:00:00.001-07:002019-01-18T15:36:49.462-07:00Eliminate FHA Mortgage Insurance<p><span>Mortgage insurance premium can add almost $200 to the payment on a $265,000 FHA mortgage.<span> </span>The decision to get an FHA loan may have been the lower down payment requirement or the lower credit score levels, but now that you have the loan, is it possible to eliminate it?</span></p> <p><span><span>Mortgage Insurance Premium protects lenders in case of a borrower's default and is required on FHA loans.<span> </span>The Up-Front MIP is currently 1.75% of the base loan amount and paid at the time of closing.<span> </span>Annual MIP for loans with greater than 95% loan-to-value is .85% per year.<span> </span></span></span></p> <p><span>For loans with FHA case numbers assigned before June 3, 2013, when the loan is paid down to 78% of the original loan amount, the MIP can be cancelled.<span> </span>The borrower may need to contact the current servicer.</span></p> <p><span>However, for loans greater than 90% with FHA case numbers assigned on or after that date, the MIP is required for the term of the loan.</span></p> <p><span>Most homeowners with FHA mortgages are not eligible to cancel the MIP because they either originated their loan after June 3, 2013, put less than 10% down payment and/or got a 30-year loan.<span> </span>If they have at least 20% equity in the home, they can refinance the home with an 80% conventional loan which in most cases, does not require mortgage insurance.</span></p> <p><span>With normal amortization on a 30-year loan, it takes approximately 11-years to reduce the original loan to the 78-80% requirement based on normal amortization.<span> </span>There is another dynamic involved which is the appreciation on the home.<span> </span>As the home goes up in value and the unpaid balance goes down, the equity increases.</span></p> <p><span>If the homeowners believe that they have enough equity that would eliminate the need for mortgage insurance, they can investigate refinancing with a conventional loan.<span> </span>Borrowers refinancing will incur expenses in starting a new mortgage and the interest rate may be higher than the existing rate.<span> <a class="FinApp.Refi" href="https://www.BetterHomeowners.com/FinancialApps/RefinanceAnalysis.aspx?AccountId=O-mLz_Z81UuwqXW_LojklA&Auth=1" ><span></span>Analysis </a></span>will determine how long it will take to recapture the cost of refinancing. </span></p> <p><span>Call me as (505) 389-4316 for a recommendation of a trusted mortgage professional.</span></p> <br> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-48356685216619918212019-01-01T08:00:00.000-07:002019-01-18T15:36:49.540-07:00Year End Tax Newsletter<p><span><span style="font-family: Calibri;">One of the first steps in a good outcome is knowing a little bit about what you're about to undertake.<span> </span>By being aware of some of the areas regarding homes that may not come up every year in a tax return, you'll be able to point them out to your tax professional or seek more information from IRS.gov.</span></span></p> <p><span style="font-family: Calibri;">Look through this list of items for things that could affect your tax return.<span> </span>Even if you have relied on the same tax professional for years to look out for your best interests, they need to be aware that there could be something different in this year's return.</span></p> <p><span style="font-family: Calibri;"><span>If you bought a home for a principal residence last year, check your closing statement and identify any points or pre-paid interest that you or the seller paid based on the mortgage you received.<span> </span>These can be deducted on your Schedule A as qualified home interest if you itemize your deductions.<span> </span>See <strong>Home Mortgage Interest Deduction</strong> | <a href="http://www.irs.gov/pub/irs-pdf/p936.pdf">IRS Publication 936</a></span><span><span> <span style="font-size: 14px;">(2018 version not released as of this newsletter)</span>.</span></span></span></p> <p><span style="font-family: Calibri;"><span>Keep track of all money you spend on your home that might be considered a capital improvement.<span> </span>Get in the habit of putting receipts for money spent on your home that is not the house payment or utility bills.<span> </span>Repairs are not tax deductible but improvements, even small ones, can be added to the basis of your home which can lower the gain when the home is sold.<span> </span>Years from now, your tax preparer can sift through them and determine whether they're capital improvements or maintenance. See Increases to Basis | <a title="" href="https://www.irs.gov/pub/irs-pdf/p523.pdf" target="">IRS Publication 523 Selling Your Home</a> <span style="text-align: left; color: rgb(0, 0, 0); text-transform: none; text-indent: 0px; letter-spacing: normal; font-size: 14px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; word-spacing: 0px; white-space: normal; orphans: 2; -webkit-text-stroke-width: 0px; background-color: transparent;">(2018 version not released as of this newsletter)</span><span style="text-align: left; color: rgb(0, 0, 0); text-transform: none; text-indent: 0px; letter-spacing: normal; font-size: 16px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; word-spacing: 0px; display: inline !important; white-space: normal; orphans: 2; float: none; -webkit-text-stroke-width: 0px; background-color: transparent;">.</span></span></span></p> <p><span style="font-family: Calibri;">By making additional principal contributions with your mortgage payment, you'll save interest, build equity and shorten the term of a fixed-rate mortgage. See <a class="FinApp.EquityAccelerator" href="https://www.BetterHomeowners.com/FinancialApps/EquityAccelerator.aspx?AccountId=O-mLz_Z81UuwqXW_LojklA&Auth=1" >Equity Accelerator</a>.</span></p> <p><span style="font-family: Calibri;">If you sold a home last year, the payoff on your old mortgage included interest from the last payment you made to the date of the payoff. That interest is tax deductible. You may need a breakdown of the payoff to the mortgage company; you should be able to get that from your closing officer.</span></p> <p><span style="font-family: Calibri;">If you refinanced your home, unlike a home purchase, points paid to refinance are not deductible as interest in the year paid; they must spread ratably over the life of the mortgage. See Home Mortgage Interest Deduction | <a style="color: rgb(0, 0, 255);" href="http://www.irs.gov/pub/irs-pdf/p936.pdf">IRS Publication 936</a><span style="text-align: left; color: rgb(0, 0, 0); text-transform: none; text-indent: 0px; letter-spacing: normal; font-size: 16px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; word-spacing: 0px; white-space: normal; orphans: 2; -webkit-text-stroke-width: 0px; background-color: transparent;"><span> <span style="font-size: 14px;">(2018 version not released as of this newsletter).</span></span></span></span></p> <p><span style="font-family: Calibri;">For homeowners who have lost a spouse, there is an exception regarding the exclusion on the sale of a principal residence.<span> </span>If the surviving spouse concludes a sale of the home within two years of the death of their spouse, they may exclude up to $500,000, instead of $250,000 for single taxpayers, of gain provided ownership and use tests are met prior to death.</span></p> <p><span style="font-family: Calibri;"><span>The two-year period begins on the date of death and ends two years after that date.<span> </span>See Sale of Main Home by Surviving Spouse | </span><a title="" style="text-align: left; color: rgb(0, 0, 255); text-transform: none; text-indent: 0px; letter-spacing: normal; font-size: 16px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: underline; word-spacing: 0px; white-space: normal; orphans: 2; -webkit-text-stroke-width: 0px; background-color: transparent;" href="https://www.irs.gov/pub/irs-pdf/p523.pdf" target="">IRS Publication 523 Selling Your Home</a><span style="text-align: left; color: rgb(0, 0, 0); text-transform: none; text-indent: 0px; letter-spacing: normal; font-size: 16px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; word-spacing: 0px; display: inline !important; white-space: normal; orphans: 2; float: none; -webkit-text-stroke-width: 0px; background-color: transparent;"> </span><span style="text-align: left; color: rgb(0, 0, 0); text-transform: none; text-indent: 0px; letter-spacing: normal; font-size: 14px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; word-spacing: 0px; white-space: normal; orphans: 2; -webkit-text-stroke-width: 0px; background-color: transparent;">(2018 version not released as of this newsletter).</span></span></p> <p><span style="font-family: Calibri;"><span>There could be significant tax consequences to a person selling a home that was received as a gift as compared to receiving the home through inheritance.<span> With a gift, the basis of the donor becomes the basis of the donee. With inheritance, the heir usually gets a stepped-up basis and avoids potential unrecognized gain. </span>See Home Received as Inheritance | <a title="" style="text-align: left; color: rgb(0, 0, 255); text-transform: none; text-indent: 0px; letter-spacing: normal; font-size: 16px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: underline; word-spacing: 0px; white-space: normal; orphans: 2; -webkit-text-stroke-width: 0px; background-color: transparent;" href="https://www.irs.gov/pub/irs-pdf/p523.pdf" target="">IRS Publication 523 Selling Your Home</a><span style="text-align: left; color: rgb(0, 0, 0); text-transform: none; text-indent: 0px; letter-spacing: normal; font-size: 16px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; word-spacing: 0px; display: inline !important; white-space: normal; orphans: 2; float: none; -webkit-text-stroke-width: 0px; background-color: transparent;"> </span><span style="text-align: left; color: rgb(0, 0, 0); text-transform: none; text-indent: 0px; letter-spacing: normal; font-size: 14px; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; word-spacing: 0px; white-space: normal; orphans: 2; -webkit-text-stroke-width: 0px; background-color: transparent;">(2018 version not released as of this newsletter).</span></span></span></p> <span style="font-family: Calibri;"> <span style="font-size: 16px;"><span>Click here to download a <a class="Guide.Vqn2ztsUJE-EcypkTjk25Q" href="https://www.BetterHomeowners.com/MelanieMcLaughlin/guide/Vqn2ztsUJE-EcypkTjk25Q" >Homeowners Tax Guide</a>.<span> </span>This is meant for information purposes only and advice from a qualified tax professional should be sought to find out about your individual situation.<img width="200" height="200" style="width:200px; height:200px; float:right;" alt="tax guide 001.png" src="http://www.betterhomeowners.com/image.ashx/JtrUpTx_GUaR1i9l9Fy8Mg" processed="true" class=" alignright"></span></span></span><br> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-91916910337797445242018-12-25T08:00:00.001-07:002019-01-18T15:36:49.674-07:00Your Real Estate Resource<p><span>Being a better homeowner is a full-time job.<span> </span>It's not just about making better decisions when you buy and sell; it's making better decisions throughout the time you own the home.</span></p> <p><span>It takes good information to make good decisions.<span> </span>Think of times when you need advice on financing, taxes, insurance, maintenance, finding reasonable and reliable contractors and lots of other things.<span> </span>Imagine how nice it would be to have a real estate information line you could call whenever you have a question.</span></p> <p><span>During the purchase or sale, the obvious place to get real estate answers is your agent but where do you go the rest of the time? Since homeowners are now staying in their homes for ten to twelve years or more, they need a reliable resource for good information and advice.</span></p> <p><span>Our objective is to move from a single purchase or sale to customers for life; a select group of our friends and past customers who consider us their lifelong real estate professional.<span> </span><span> </span>We believe that if we help you and your friends with all their real estate needs not just when they buy or sell but for all the years in between, we can earn the privilege to be your real estate professional.</span></p> <p><span><span>Throughout the year, we'll send reminders and suggestions by email and social media that enhance your homeowner experience.<span> </span>When we find good articles to help you be a better homeowner, we'll pass them along.<span> </span>You'll discover new ways to maintain your property, minimize expenses and manage debt and risk. <span></span></span></span></p> <p><span>We want to be your "Go-To" person for everything to do with real estate.<span> </span>If you have a question, please call us at (505) 389-4316.<span> </span>If we don't have the answer, we'll find it for you or at least, point you in the right direction.</span></p> <span style="font-size: 11pt;"><span>We're here for you and your friends...now and in the future.<span> </span>Please let us know how we can help you.</span></span><br> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-72739584804942652952018-12-18T08:00:00.001-07:002019-01-18T15:36:49.632-07:00More Comfortable, Convenient and Secure<p>Smart home technology promises to make your home more comfortable, convenient and secure. It may not be the home from the Jetson's but artificial intelligence is the hope to make it the home of the future which is available now and controlled from anywhere you have an Internet connection.</p> <p>When Alexa appeared at Christmas-time two years ago, most people thought it was a novelty to ask what the weather will be or to play a song. Few people understood the vision of Amazon would be verbally purchasing everything imaginable and that your calendar, contacts, lights, and appliances would all be connected.</p> <p>There are plenty of players in the market including Amazon Alexa, Google Assistant, Samsung Smart Things, Apple and others. It starts with a hub that acts like a brain for your system to connect the different home automation devices. You'll establish an online account with the hub manufacturer so that you can adjust settings and controls.</p> <p><span style="font-size: 1rem;">You could start simple with switch and plug receptacles that would allow you to control lights either vocally through your hub or from your Smartphone or tablet anywhere in the world where you have an Internet connection.</span></p> <p>Programmable thermostats can lower your monthly utility costs while conveniently regulating your comfort by adjusting temperatures on your heating and cooling systems. These can be particularly effective in homes with zoned systems where you might live in one area during the day but sleep in a different zone.</p> <p>Door bells might be one of the next additions to your automation. Not only can you communicate with the person at your door, you don't have to go to the door to do it. The device cameras are motion activated so you'll see who is there regardless of whether they rang the doorbell or not.</p> <p>Door locks can be convenient because instead of giving someone a key, you can issue a temporary code to let them enter. You can give them permanent access and rescind it any time you want without having to change the locks. You'll know when they enter and leave your home.</p> <p>Other security options can include door and window sensors, motion detectors and cameras for outside or inside the home. The homeowner will be able to monitor from inside or anywhere else they have an Internet connection.</p> <p>Smoke and carbon monoxide detectors, as well as water sensors to determine leaking water around water heaters or in basements give homeowners peace of mind.</p> <p>Most of these devices are available in wireless models so you won't have to string wire throughout the home. The Wi-Fi can introduce a potential problem of hackers who could illegally access your system. This is true with any home that has a Wi-Fi router and precautions should be taken.</p> <span style="font-size: 11pt;">The big box stores like <span><a href="https://www.lowes.com/l/smart-home.html">Lowes</a></span>, <span><a href="https://www.homedepot.com/b/Smart-Home/N-5yc1vZc1jw?NCNI-5&searchRedirect=smart+home&semanticToken=200r20000+%3E++st%3A{smart+home}%3Ast+cnn%3A{0%3A0}+cnb%3A{0%3A0}+ct%3A{smart+home}%3Act+qu%3A{smart+home}%3Aqu">Home Depot</a></span>, and <span><a href="https://www.amazon.com/s/ref=nb_sb_noss_2?url=search-alias%3Daps&field-keywords=smarthome&rh=i%3Aaps%2Ck%3Asmarthome">Amazon </a></span>offer a wide variety of brands and modules. Many people prefer it as a do-it-yourself project and others would rather have a professional do it for them. YouTube has a lot of videos that can probably show you exactly how to install the ones you select.</span> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-32629943724013371902018-12-11T08:00:00.000-07:002019-01-18T15:36:49.500-07:00Another Type of Financing Concession<p><span>Price, condition and terms are factors that any owner must consider when marketing their home.<span> </span>Price is usually the easiest to adjust to compensate for shortcomings in location or condition of the home.<span> </span>Improving the condition of the property is more time consuming but updates to kitchens, baths and other things can appeal to a buyer.</span></p> <p><span>One of the most overlooked marketing factors are terms which are also referred to as financing concessions.</span></p> <p><span>Paying part or all a buyer's closing costs is the most common financing concession.<span> </span>By doing so, the buyer doesn't need as much cash to get into the home which can be attractive to more buyers. </span></p> <p><span>There is another financing concession that is not used very often in today's market but it is still allowed and can increase the marketability of a home. A temporary buy-down of the interest rate makes a lower payment for an initial period.</span></p> <p><span>It is still a fixed-rate mortgage that the buyer must qualify for at the note rate and there is no negative amortization.<span> </span>The seller pre-pays the interest in advance at closing so the buyer has lower payments in the initial period.</span></p> <p><span>Instead of lowering the price of the home, let's say the seller has decided to offer $6,875 worth of financing concessions that the buyer can apply any way they want.<span> </span>One way might be to get a 2/1 buy-down which means that the first year, the payment would be based on 2% less than the note rate of the mortgage and the second year, it would be 1% less than the note rate.<span> </span>The third through thirtieth years, the payment would be the actual note rate.</span></p> <p><span>On a $275,000 home with a 3.5% down payment at 5% for 30 years, the first year's mortgage payment would be figured at 3% which would be $305.76 less than normal.<span> </span>The second year's payment would be figured at 4% and would be $157.65 less than normal.<span> </span>The third through thirtieth years, the payment would be the normal payment of $1,424.59.</span></p> <p><img width="500" height="295" style="width:500px; height:295px; " alt="Financing Concessions.png" src="http://www.betterhomeowners.com/image.ashx/fctG47UZDkOgY8mm12yxnQ" processed="true"><br> </p> <p><span>It would save the buyer $5,560.90 in interest in the first two years and there would still be $1,314 of the financing concession to apply toward the buyer's closing costs.</span></p> <p><span>The financing concessions paid by the seller give the buyer lower payments for the first two years and less money needed for the closing cost.<span> </span>An added bonus for the buyer is that the buyer can deduct the pre-paid interest the seller paid as qualified mortgage interest.</span></p> <span style="font-size: 11pt;"><span>Some lenders may tell you that temporary buy downs cannot be done.<span> </span>They've been around for over thirty years and can still be done today on FHA, VA and conventional loans.<span> </span>Call (505) 389-4316 if you need a recommendation of a trusted mortgage professional or check out a <a class="FinApp.21Buydown" href="http://www.BetterHomeowners.com/FinancialApps/21Buydown.aspx?AccountId=O-mLz_Z81UuwqXW_LojklA&Auth=1" >2/1 Buydown</a> with your own numbers.</span></span><br> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-13439402751747299672018-12-04T08:01:00.001-07:002019-01-18T15:36:49.421-07:0044 Times More Than a Renter<p><span style="font-family: Calibri;">The Federal Reserve Board's Triennial Survey of Consumer Finances recently revealed the net worth of a homeowner was $231,400 compared to $5,200 for a renter.<span> </span>The net worth of homeowners increased 15% from 2013 to 2016 while renters' decreased by 5%.</span></p> <p><span style="font-family: Calibri;">Appreciation and principal reduction are the two dynamics that affect a homeowner's equity.<span> </span>Each payment is applied to the interest for the previous month and the principal reduction to retire the mortgage.</span></p> <p><span style="font-family: Calibri;">A $300,000 home purchased with a $294,566 FHA mortgage at 5% for 30 years has an average monthly principal reduction $362 in the first year. Two percent appreciation would benefit the buyer by $500 a month.<span> </span>In this example, the equity grows by $860 a month for the homeowner.<span> </span>A tenant would have to invest $660 a month over and above the rent they're paying.</span></p> <p><span style="font-family: Calibri;">Based on the assumptions listed above, the $10,500 down payment would become approximately $85,000 of equity in seven years. <span style="margin: 0px;"><span style="margin: 0px; color: rgb(0, 0, 0); line-height: 115%; font-size: 11pt; text-decoration: none;">Leverage and forced savings contribute to the difference in addition to the appreciation and principal reduction.</span></span></span></p> <p><span style="font-family: Calibri;">The rent paid by tenants help the landlord recoup their investment in the home and a return on their investment.<span> </span>Some people say, regardless if a person rents or buys, they pay for the house they occupy.<span> </span>The choice is whether to buy it for themselves or their landlord.</span></p> <span style="font-family: Calibri;"> <span style="font-size: 11pt;"><span>Check out some of the benefits using your own numbers with this fill-in-the blank <a class="FinApp.RentvsOwn" href="http://www.BetterHomeowners.com/FinancialApps/RentvsOwn.aspx?AccountId=O-mLz_Z81UuwqXW_LojklA&Auth=1" >Rent vs. Own</a>.</span></span></span><br> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-83962810022878005332018-11-27T08:00:00.001-07:002019-01-18T15:36:49.655-07:00Gift of Equity<p><span>There is a little-known mortgage program that could provide the vehicle for the right person to get into a home.<span> </span>If a person sells their home to another for less than the fair market value, the difference in the appraised value and the sales price is considered a gift of equity for the buyer.</span></p> <p><span><span>FHA requires that borrowers receive gifts of equity only from family members transferring title to the borrower.<span> </span></span></span></p> <p><span>An appraisal is required to determine the value of the home.<span> </span>The sales price is subtracted from the appraised value to determine the equity to be gifted.<span> </span>If a home appraises for $300,000 when the owner will sell it for $250,000, the gift is $50,000.</span></p> <p><span>The gift is applied to the down payment.<span> </span>In this example, the borrower would have to qualify for a $250,000 mortgage which would require private mortgage insurance because a 20% down payment on a $300,000 home would be $60,000.<span> </span>If the buyer had an additional $10,000 in cash to put down, the PMI would not be required, and the monthly payments would be lower.</span></p> <p><span>The seller would need to provide a gift letter stating the amount of the gift, the date the gift, and that no repayment is expected or required.<span> </span>It also needs to have the donor's name, address, phone, email and relationship to the buyer.<span> </span>In addition, the settlement statement will need to show the gift being credited from the seller to the buyer.<span> </span>The lender may require additional documentation.</span></p> <p><span>Beginning in 2018, the annual gift tax exemption is increased to $15,000 per person per year and lifetime exemption to $5.6 million.<span> </span>The fact that the $50,000 exceeds the individual amount doesn't mean there will necessarily be any gift tax due now.<span> </span>The seller should consult their tax professional.</span></p> <br> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-64989440026810205022018-11-20T08:02:00.001-07:002019-01-18T15:36:49.579-07:00Do You Know the Way?<p><span>It may be natural for first-time buyers to be unsure of the process of buying a home because they haven't been through it before but even repeat buyers need to know changes that have taken place since the financial housing crisis.</span></p> <p><span>The steps in the home buying process are predictable and generally follow the same pattern.<span> </span>It certainly makes the move stay on schedule when you know all the different things that must be done to get to the closing.</span></p> <ul> <li><span>In the initial interview with your real estate professional, you share the things you want and need in a home, discuss available financing and learn how your agent can represent you in the transaction.</span></li> <li><span>The pre-approval step is essential for anyone using a mortgage to purchase a home to assure that they're looking at the right price of homes and so they'll know what they can qualify for and what the interest will be.</span></li> <li><span>Even with lower than normal inventory, it is difficult to stay up-to-date with the homes currently for sale and the new one just coming on the market.<span> </span>Technology has simplified this process, but the buyer needs to implement them. </span></li> <li><span></span><span>Showings can be accommodated online through virtual tours, drive-bys and finally, a personal tour through the home.<span> </span>Your real estate professional can work with you to see all the homes in the market through REALTORS®, builders or for sale by owners. </span></li> <li><span></span><span>When a home has been identified, an offer is written and negotiation over price, condition and terms takes place.</span></li> <li><span></span><span>A contract is a fully negotiated, written agreement.</span></li> <li><span></span><span>Escrow is opened to deposit the earnest money from the buyer as a sign they're acting in good faith.<span> </span>The title search is also started so that clear title can be conveyed from the seller to the buyer and that the lender will have a valid lien on the property.</span></li> <li><span></span><span>88% of home sales involve a mortgage.<span> </span>The lender will require an appraisal to be sure that the home can serve as partial collateral for the loan.<span> </span>If the buyer has been pre-approved, the verifications will be updated to be certain that they're still valid.<span> </span>The entire loan package when completed, is sent to underwriting for final approval.</span></li> <li><span></span><span>When the contract is completed, at the same time the title search and mortgage approval is being worked on, the buyer will arrange for any inspections that were called for in the contract.</span></li> <li><span></span><span>After all contingencies have been completed, the transaction goes to settlement where all of the necessary papers are signed, and the balance of the buyer's money is paid.<span> </span>This is where title transfers from the seller to the buyer.</span></li> <li><span></span><span>Possession occurs according to the sales contract.</span></li> </ul> <p><span>One of the responsibilities of your real estate professional is to make sure that things are done in a timely manner so that the transaction will close according to the agreement on time and without unforeseen or unnecessary problems.</span></p> <p><span>Even if you're not ready to buy or start looking yet, you need to be assembling your team of professionals.<span> </span>Let us know and we'll send you our recommendations, so you can read about them on their websites.</span></p> <p><span>If you have any questions, call us at (505) 389-4316; we're happy to help.<span> </span>Informed buyers lead to satisfied homeowners and that is better for everyone involved.</span></p> <br> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-34797354684534779402018-11-13T08:01:00.001-07:002019-01-18T15:36:49.510-07:00Roll the Repairs into the Mortgage<p><span>It's been said that if you can find a home that has most of what you want, you should go ahead and purchase it.<span> </span>Many first-time buyers are using everything they have for a down payment and closing costs and would have to "live" with the less than perfect home until they can save the money to make the changes.</span></p> <p><span>The FHA 203(k) mortgage allows a borrower to purchase a home and provides additional funds for improvements to be made.<span> </span>These types of renovations can include kitchen and bathroom remodels, flooring, plumbing, heating and air conditioning systems, additions and other things.</span></p> <p><span>The benefit to the buyer is that they have the opportunity to consider a home that needs repairs and might have been unacceptable without a program like this.<span> </span>Being a FHA loan, a minimal down payment is required, fair interest rates and generous qualifying requirements.</span></p> <p><span>The 203(k) Streamline can be used for cosmetic improvements, appliances and minor remodeling up to $35,000 in cost.</span></p> <p><span><span>As you can imagine, this is a specialized program and not all lenders choose to make 203(k) loans.<span> </span>They usually take longer to process and getting firm bids on the work to be done will be required.<span> </span>It is important to find out how much experience a lender has with this particular type of loan.<span> </span><span> </span></span></span></p> <p><span>It will also be required that you work with a 203(k) consultant in addition to the mortgage officer.</span></p> <p><span><span>For more information, go to </span><span><a href="https://www.hud.gov/program_offices/housing/sfh/203k"><span style="text-decoration: underline;"><span>Hud.gov</span></span></a></span><span>.<span> </span>FNMA has a similar conventional loan program called </span><a href="https://www.fanniemae.com/content/fact_sheet/homestyle-renovation-product-matrix.pdf"><span style="text-decoration: underline;"><span>HomeStyle Mortgage</span></span></a></span><span>.<span> </span>Your real estate professional will be able to help with recommendations.<span> </span>Call me at (505) 389-4316.</span><br> </p> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-57493571567798082018-11-06T08:00:00.001-07:002019-01-18T15:36:49.549-07:00Getting the "Right" Home<p><span style="font-family: Calibri;"><span style="font-size: 14px;">Finding the right home is still the biggest challenge buyers are faced with in today's market as is shown in the latest Confidence Index Survey.<span> </span>Assuming the buyers find the "right" home with determination, perseverance and the help of a real estate professional, 88% of all transactions last year required financing to get the buyer's address on the home.<span> </span>93% of first-time buyers needed financing.</span></span></p> <p><span style="font-family: Calibri; font-size: 14px;">Pre-approval is an essential step that needs to be handled before buyers begin searching for a home.<span> </span>The benefits to the buyer fall into the category of confidence.</span></p> <p><span style="font-family: Calibri; font-size: 14px;">PRE-APPROVAL GIVES YOU CONFIDENCE</span></p> <ul> <li><span style="font-family: Calibri; font-size: 14px;">Knowing the amount you can borrow<span> </span><br> <em><span style="color: rgb(192, 0, 0);">the mortgage amount decreases as interest rates rise</span></em></span></li> <li><span style="font-family: Calibri; font-size: 14px;">Looking at the right priced homes<br> <em><span style="color: rgb(192, 0, 0);">price, size, amenities, location</span></em></span></li> <li><span style="font-family: Calibri; font-size: 14px;">Comparing and identifying the best loan<br> <em><span style="color: rgb(192, 0, 0);">rate, term, type</span></em></span></li> <li><span style="font-family: Calibri; font-size: 14px;">Uncover issues early that could affect the most favorable loan terms<br> <em><span style="color: rgb(192, 0, 0);">time to cure possible problems</span></em></span></li> <li><span style="font-family: Calibri; font-size: 14px;">Bargaining power to negotiate with the seller and possibly, competing buyers<br> <em><span style="color: rgb(192, 0, 0);">price, terms, & timing</span></em> </span><span style="font-family: Calibri; font-size: 14px;"></span></li> <li><span style="font-size: 14px;"><span style="font-family: Calibri; font-size: 14px;"><span>Settlement can occur sooner after contact is accepted<br> </span> <em><span style="color: rgb(192, 0, 0);">verifications have already been made</span></em></span><br> </span></li> </ul> <p><span style="font-size: 14px;"><span style="font-family: Calibri; font-size: 14px;"><strong><span>Items Needed for Pre-Approval</span></strong></span><br> </span></p> <ul> <li><span style="font-family: Calibri; font-size: 14px;">Photo ID</span></li> <li><span style="font-family: Calibri; font-size: 14px;">Two months current pay stubs</span></li> <li><span style="font-family: Calibri; font-size: 14px;">Last two year's W2s</span></li> <li><span style="font-family: Calibri; font-size: 14px;">Complete copies of checking and savings statements for last three months</span></li> <li><span style="font-family: Calibri; font-size: 14px;">Copies of statements for IRAs, 401k, savings, CDs, money market funds, etc.</span></li> <li><span style="font-family: Calibri; font-size: 14px;">Employment history for last two years with addresses and contacts</span></li> <li><span style="font-family: Calibri; font-size: 14px;">Proof of commissioned or bonus income</span></li> <li><span style="font-family: Calibri; font-size: 14px;">Residency history for last two years with addresses and contacts</span></li> <li><span style="font-family: Calibri; font-size: 14px;">Assets for down payment, closing costs, and reserves; must provide paper trail</span></li> <li><span style="font-family: Calibri; font-size: 14px;">If self-employed, last two years tax returns, current profit and loss statement and balance sheet; copy of partnership/corporate tax returns for last two years if owning more than 25% of company</span></li> <li><span style="font-family: Calibri; font-size: 14px;">FHA requires driver's license and social security card</span></li> <li><span style="font-family: Calibri; font-size: 14px;">VA requires original certificate of eligibility and DD214</span></li> <li><span style="font-size: 14px;"><span style="font-family: Calibri; font-size: 14px;">Other things may be required such as previous bankruptcy, divorce decree</span><br> </span></li> </ul> <p><span style="font-family: Calibri; font-size: 14px;">Contact us at (505) 389-4316 or <a class="Profile.EmailAddress" href="mailto:Melanie@BlueDoorHomes.net" >Melanie@BlueDoorHomes.net</a> if you'd like a recommendation of a trusted mortgage professional.</span></p> <br> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-39414650104837139682018-10-30T08:03:00.001-06:002019-01-18T15:36:49.520-07:00Start Early and Live Happily Ever-after<p><span>As storybooks go, the character is introduced, they meet their love interest, a villain thwarts their intentions, true love overcomes, they marry and live happily ever-after.<span> </span>It's a very familiar formula.</span></p> <p><span><span>Similarly, there is a formula that couples follow in real life.<span> </span>They go to college, get a good job, rent a home, fall in love, get married and buy a starter home.<span> </span>They start a family, move into a larger home, save for their children's education, start planning for their retirement and if they live within their means, they invest their surplus funds.</span></span></p> <p><span><img width="500" height="177" style="width:500px; height:177px; " alt="Financial Timeline.png" src="http://www.betterhomeowners.com/image.ashx/qAt2VfOIWUC_1FEJiZD1wQ" processed="true"></span></p> <p><span>An alternative to this might be to start investing in rental homes early in their adult life before their standard of living becomes so expensive that they don't feel like they have the money to purchase rentals.<span> </span>There are infinite possibilities but let's say a single person, after getting a good job, buys a small three or four-bedroom home with an owner-occupied, minimum down payment.<span> </span>They move into the home and possibly, rent out the bedrooms to other singles who need a place to live.</span></p> <p><span>At some point, they decide to buy another home to live in with a minimum down payment and either rent out their bedroom in the first home or rent the whole home to a tenant.<span> </span>And they repeat the process again with the second home.</span></p> <p><span>This could continue until they acquired several homes.<span> </span>Let's say, that in the meantime, they have met their love interest, decide to get married and together, they buy a starter home for them to live in.</span></p> <p><span>This concept advances the investment in rental homes from the latter part of their lives to the early part of their life.<span> </span>The early investment gives them more time for appreciation and wealth accumulation.<span> </span>A simple principle of investing is that sooner is better than later.<span> </span>By delaying gratification to own your "dream home" early, a person may be able to accumulate more net worth in the same period of time.</span></p> <p><span>Buying a property initially as owner-occupied permits a lower down payment of 3.5% compared to a typical down payment for non-owner-occupied properties is 20%.<span> </span>By using more borrowed funds, leverage can increase the yield on the investment.</span></p> <span style="font-size: 11pt;"><span>It may be too late for some people reading this article to adopt this strategy but if they have kids in college, it may be something for them to consider.</span></span><br> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-24704391799184637372018-10-23T08:00:00.001-06:002019-01-18T15:36:49.476-07:00It's Not Just the Tax Benefits<p><span><span style="font-family: Calibri;">When the standard deduction for married couples filing jointly was increased from $12,700 to $24,000 for 2018, there was some speculation that the bloom was off the rose of homeownership.<span> </span>The thought was that if the tax benefits from being able to deduct the property taxes and interest was less than the standard deduction, that maybe, the buyer would be better off continuing to rent.</span></span></p> <p><span style="font-family: Calibri;">With mortgage rates as low as they have been for the past eight years, payments have been lower and so has the amount of interest that was paid.<span> </span>This and the fact that sales and local taxes, which include property taxes, are limited to $10,000 a year on the Itemized Deduction form have made it harder to reach the increased standard deduction.</span></p> <p><span style="font-family: Calibri;">The reality of the situation is tax benefits are only one of the components that make a home an excellent investment and it probably contributes the least of the top three benefits.<span> </span>Principal reduction and appreciation build an owner's equity in an automatic way that is like a forced savings account. </span></p> <p><span style="font-family: Calibri;"><span>In today's market, it is common for the total house payment to be lower than the rent a first-time home buyer is currently paying.<span> </span>As a homeowner, the buyer would have additional expenses like maintenance and possibly, a HOA.<span> </span></span></span></p> <p><span style="font-family: Calibri;">To illustrate the net effect, let's look at a purchase price of $275,000 with 3.5% down payment on a 4.75% 30-year FHA loan.<span> </span>We'll assume the home appreciates at 3% annually and the buyer is currently paying $2,000 a month rent.</span></p> <p><span style="color: rgb(33, 37, 41); font-family: Calibri;"><img width="452" height="177" style="width:452px; height:177px; " alt="newsletter 102218.png" src="http://www.betterhomeowners.com/image.ashx/uEbLTP0HkESGLGIqH3r_CQ" processed="true"></span></p> <p><span style="color: rgb(33, 37, 41); font-family: Calibri;">The total payment is $2,115.44 including principal, interest, property taxes, property and mortgage insurance. However, when you consider the monthly principal reduction, appreciation, maintenance and HOA, the net cost of housing is $1,205.72. It costs $794.28 more a month to rent than to own. In a year's time, it would cost $9,531.36 more to rent than to own which is more than the down payment required to buy the home.</span></p> <span style="font-family: Calibri;"> <span style="font-size: 11pt;"><span>In seven-years, the $9,625 down payment would grow to over $101,000 in equity.<span> </span>The equity build-up far exceeds the tax benefits which some people would have as an additional incentive.<span> </span>Use this <a class="FinApp.RentvsOwn" href="http://www.BetterHomeowners.com/FinancialApps/RentvsOwn.aspx?AccountId=O-mLz_Z81UuwqXW_LojklA&Auth=1" >Rent vs. Own</a> to see what the net cost of housing would be using a home in your price range or call me at (505) 389-4316 and I'll do it for you.</span></span></span><br> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-2072933835542509572018-10-16T08:00:00.001-06:002019-01-18T15:36:49.449-07:00HELOCs Becoming More Expensive <p><span>In September, the Federal Reserve raised interest rates for the third time in 2018 and they're expected to go up one more time this year and three times next year.<span> </span>If you have a Home Equity Line of Credit, HELOC, you're paying more to use that money and it is going to become more expensive.</span></p> <p><span>It may make sense to refinance your home and consolidate the balance of your HELOC to lock in a lower mortgage rate.<span> </span>Most lenders require that the combination of these loans should not exceed 80% of the home's fair market value and that you have good credit and adequate income to support the payment.</span></p> <p><span><span>A HELOC is a first or second mortgage that allows the borrower to withdraw money as needed, up to the line of credit provided by the lender.<span> </span>A draw period is established where the borrower is only required to pay interest.<span> </span></span></span></p> <p><span>Since all HELOC loans are variable rate mortgages, during periods of rising rates, the cost of the funds increase.<span> </span>However, unlike adjustable rate mortgages that have specified adjustment periods and caps, a HELOC adjusts when the prime interest changes.</span></p> <p><span>The formula for determining available funds on a refinance are to take 80% of the fair market value, which will probably have to be verified by appraisal, less the existing first mortgage and the costs to refinance.<span> </span>The balance would need to cover the cost of replacing the HELOC.<span> </span>Any remaining balance may be available for cash to be taken out.</span></p> <p><span><span>Now is a great time for a mortgage review.</span><em><span> </span></em><span><span>In many cases, the equity you have in your home may allow you to eliminate mortgage insurance and substantially lower your monthly payment.</span><em><span> </span></em><span>As with all tax matters, always consult with a tax professional before making any decisions.</span><em><span><span> </span></span></em></span><span>Call us at (505) 389-4316 for a recommendation of a trusted mortgage professional.</span></span></p> <br> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-65531457396969417902018-10-09T08:00:00.001-06:002019-01-18T15:36:49.595-07:00Fast Track Rental Property<p><span>FHA allows owner-occupants to purchase up to a four-unit property with a minimum 3.5% down payment.<span> </span>The rent collected on three units could be used to make the payment and the owners' pro-rata share would be less than ¼ of the payment itself.</span></p> <p><span>The owner-occupied unit would be considered their principal residence.<span> </span>The other three units are treated as rental property and eligible for cost recovery, a non-cash deduction plus all the normal business expenses.<span> </span>The rental income of the three remaining units is calculated as income and assists the buyer in qualifying.</span></p> <p><span>A homeowner could buy a four-unit, live in one for two years, buy another four-unit with a minimum down payment, move into one unit, rent the other three as well as the previous unit in the first property.<span> </span>Then, after another two years, repeat the same process over again.</span></p> <p><span>The fifth year, the homeowner/investor would have a total of 11 rental units plus the one that they are occupying.<span> </span>An acquisition strategy like this might be difficult for a family with children and a single person or couple might find it easier to move more frequently.</span></p> <p><span>As the equity increases in these properties, due to appreciation and amortization, the money could be pulled out through refinancing to purchase additional income properties.<span> </span>Another objective might be to pay the mortgage off as soon as possible and any cash flow after tax could be applied directly to the principal.</span></p> <p><span>FHA has a nationwide mortgage limit for a four-unit of $521,250 but some high-cost areas have been designated with increased limits.<span> </span>There are also loan programs for two and three-unit properties with limits of $347,000 and $419,425 with similar exceptions for high-cost areas.</span></p> <p><span>The low mortgage rate and minimal down payments for owner-occupied FHA mortgages makes this strategy attractive because it gives investors an opportunity to highly leverage their investment.<span> </span>Most non-owner-occupied (investor) mortgages would require 20-25% down payment and have a slightly higher interest rate than for an owner-occupant.</span></p> <p><span>To learn more about this opportunity, call (505) 389-4316 and we can give you information on specifics in a variety of areas. </span></p> <br> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-8341269965625596882018-10-02T08:20:00.001-06:002019-01-18T15:36:49.643-07:00Mortgage Free<p><span>It may be an all too common belief that a person will have a house payment and a car payment for the rest of their lives.<span> </span>However, with a plan and some determination, you can be mortgage free.</span></p> <p><span>Planning for retirement is obviously important and many times, an activity plagued by procrastination.<span> </span>Some homeowners' goal is to have their home paid for by retirement, so they won't have payments.<span> </span>It makes sense to eliminate a sizable recurring expense before they quit working.</span></p> <p><span>By making regular principal contributions in addition to the payments, the debt can be eliminated by the target retirement date.</span></p> <p><span><span>Assume a homeowner refinanced their $300,000 mortgage at 4% last year for 30 years with the first payment due on May 1, 2017.<span> </span>With normal amortization, the home will be paid for at the end of the term.<span> </span></span></span></p> <p><span>Additional principal contributions with each payment will save interest, build equity and of course, accelerate the payoff on the home.<span> </span>An extra $250.00 a month would pay off the mortgage 7.5 years sooner.<span> </span>$786.81 extra with each payment would pay off the loan in 15 years.</span></p> <p><span><span>Having a home paid for at retirement has the apparent benefit of no house payment.<span> </span>A debt-free home is also a substantial asset that could be borrowed against or sold if unanticipated events should occur.<span> </span></span></span></p> <p><span>To make some projections to pay off your own mortgage, use this use the <a class="FinApp.EquityAccelerator" href="http://www.BetterHomeowners.com/FinancialApps/EquityAccelerator.aspx?AccountId=O-mLz_Z81UuwqXW_LojklA&Auth=1" >Equity Accelerator</a> calculator.</span></p> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-72061263753775760072018-09-25T08:00:00.001-06:002019-01-18T15:36:49.621-07:00How to Clean Gutters<p><span><span>The gutters and downspouts on your home are intended to channel rainwater away from your home and its foundation.<span> </span>When they're blocked and not functioning properly they can lead to the gutters coming loose, wood rot and mildew, staining of painted surfaces, and even worse, foundation issues or water penetration into the interior of the home.<span> </span></span></span></p> <p><span>Most experts recommend cleaning the gutters at least once a year.<span> </span>More often might be necessary depending on the proximity of leaves and other debris that could collect.</span></p> <p><span>If this is a task that you feel comfortable about tackling yourself, there are few things to consider.<span> </span>If the debris is dry, it will be easier to clean the gutters.<span> </span>Safety is important, and precautions should be taken such as using a sturdy ladder and possibly, having someone hold it while you're on the ladder. </span></p> <p><span>Other useful tools will be a five-gallon plastic bucket to hook on the ladder to hold the debris; work gloves to protect your hands from sharp edges of the gutters; a trowel or scoop and a garden hose with a nozzle.</span></p> <p><span><span><span>·<span style="font-size: 7pt;"> </span></span></span><span>Start by placing the ladder near a downspout for the section of gutter to be cleaned. </span></span></p> <p><span><span><span>·<span style="font-size: 7pt;"> </span></span></span><span>Remove large debris and put it into the empty bucket. Work away from the downspout toward the other end.</span></span></p> <p><span><span><span>·<span style="font-size: 7pt;"> </span></span></span><span>When you're at the end of the gutter, using the water hose and nozzle, spray out the gutter so it will drain to the downspout.</span></span></p> <p><span><span><span>·<span style="font-size: 7pt;"> </span></span></span><span>If the water doesn't drain easily, the downspout could be blocked.<span> </span>Accessing the spout from the bottom with either the hose with nozzle or a plumber's snake, try to dislodge the blockage.</span></span></p> <p><span><span><span>·<span style="font-size: 7pt;"> </span></span></span><span>Reattach or tighten any pieces that were removed or loosened while working on the downspout.</span></span></p> <p><span><span><span>·<span style="font-size: 7pt;"> </span></span></span><span>Flush the gutters a final time, working from the opposite end, as before, toward the downspout.</span></span></p> <p><span><span>There are specialized tools at the home improvement stores like </span><span><a href="https://www.lowes.com/search?searchTerm=gutter+cleaning"><span style="text-decoration: underline;"><span>Lowes </span></span></a></span><span>and </span><span><a href="https://www.homedepot.com/b/Building-Materials-Roofing-Gutters-Gutters-Accessories-Gutter-Cleaning-Tools/N-5yc1vZc933/Ntk-Extended/Ntt-gutter+cleaning?Ntx=mode+matchpartialmax&NCNI-5"><span style="text-decoration: underline;"><span>Home Depot</span></span></a></span></span><span> that can make this job easier.<span> </span>Check out their websites and search for "gutter cleaning".</span></p> <br> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-14043100640189330522018-09-18T08:00:00.001-06:002019-01-18T15:36:49.438-07:00Consumer Protection from Irresponsible Mortgage Practices<p><span>Congress enacted the Dodd-Frank Act in 2010 in response to the mortgage crisis that led to America's Great Recession.<span> </span>The two parts that apply closely to homebuyers are the Ability-to-Repay (ATR) and Qualified Mortgages (QM).</span></p> <p><span>A Qualified Mortgage is a category of loans that have certain, more stable features that help make it more likely that borrowers will be able to afford their loan.<span> </span>These loans do not allow certain risky features like an interest-only period when no money is applied to reduce the principal; negative amortization that would allow the mortgage balance to increase; and, "balloon payments" at the end of the loan that are larger than the normal periodic payments.</span></p> <p><span>A debt-to-income ratio of less than or equal to 43% has been established to provide a limit on how much of a borrower's income can go toward total debt including the mortgage and all other monthly debt payments.<span> </span>However, the Consumer Finance Protection Bureau believes these loans should be evaluated on a case-by-case basis and in some cases, can exceed 43%.</span></p> <p><span>There is a limit for up-front points and fees the lender can charge.</span></p> <p><span>By showing that the lender made an effort to be certain that the borrower has the ability to repay the loan, the lender in turn, receives certain legal protections.<span> </span>Underwriting factors considered by the lender include:</span></p> <ol> <li style="color: rgb(51, 51, 51); font-size: 10pt;"><span style="font-size: 10pt;">current or reasonably expected income or assets </span></li> <li style="color: rgb(51, 51, 51); font-size: 10pt;"><span style="font-size: 10pt;">current employment status</span></li> <li style="color: rgb(51, 51, 51); font-size: 10pt;"><span style="font-size: 10pt;">the monthly payment on the covered transaction </span></li> <li style="color: rgb(51, 51, 51); font-size: 10pt;"><span style="font-size: 10pt;">the monthly payment on any simultaneous loan </span></li> <li style="color: rgb(51, 51, 51); font-size: 10pt;"><span style="font-size: 10pt;">the monthly payment for mortgage-related obligations</span></li> <li style="color: rgb(51, 51, 51); font-size: 10pt;"><span style="font-size: 10pt;">current debt obligations, alimony, and child support</span></li> <li style="color: rgb(51, 51, 51); font-size: 10pt;"><span style="font-size: 10pt;">the monthly debt-to-income ratio or residual income </span></li> <li style="color: rgb(51, 51, 51); font-size: 10pt;"><span style="font-size: 10pt;">credit history</span></li> </ol> <p><span style="color: rgb(51, 51, 51); font-size: 10pt;">For more information, see the Consumer Financial Protection Bureau fact sheet ... </span><span><span style="font-size: 10pt;"><a href="https://files.consumerfinance.gov/f/201301_cfpb_ability-to-repay-factsheet.pdf"><span style="text-decoration: underline;"><span>protecting consumers from irresponsible mortgage lending.</span></span></a></span></span></p> <br> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-64304303719161342372018-09-11T08:01:00.001-06:002019-01-18T15:36:49.568-07:00Quick Plumbing Inspection<p><span>No one wants to waste water or money.<span> </span>For that reason, take a few minutes every other month to do the following inspections:</span></p> <ol> <li><span><span>Check to see if cutoff valves on sinks and toilets are working properly.<span> <br> <br> </span></span></span><span><span>Many times, builders will put individual cutoffs on supply lines to sinks and toilets.<span> </span>It is reasonable to expect them to work but after some time, they can corrode which prevents opening and closing.<span> </span>It is a good idea to test them occasionally before you need them in an emergency.<br> <br> <span></span></span></span></li> <li><span><span><span><span style="font-size: 7pt;"> </span></span></span><span>Fill each sink with a few inches of water to see if they drain in what you feel is a normal time.<br> <br> </span></span><span><span>A slow-draining sink can be an indication of a clog that builds up around the insides of the pipe.<span> </span>Common causes are food, grease, hair and soap scum.<span> </span>Plunging can take care of some slow-running sinks.<span> </span>After partially filling the sink with water, seal the plunger over the drain and pump it up and down a few times.<br> <br> <span></span></span></span></li> <li><span><span><span> </span></span></span><span><span><span><span style="font-size: 7pt;"> </span></span></span><span>Inspect each toilet to see if they are leaking water from the tank into the bowl.<br> <br> </span></span><span><span>Toilets that continue to run after being flushed can use a large amount of water in a month's time.<span> </span>Generally, the problem comes from a flapper that doesn't seat properly.<span> </span>Sometimes, the chain is keeping it from closing properly or the flapper itself may need to be replaced.<br> <br> </span></span><span><span>Another issue could be that the flush valve needs to be replaced.<span> </span>These can be purchased at </span><span><a href="http://www.lowes.com/Search=flush+valve?storeId=10151&langId=-1&catalogId=10051&N=0&newSearch=true&Ntt=flush+valve#!"><span style="text-decoration: underline;"><span>Lowe's</span></span></a></span><span> or </span><span><a href="http://www.homedepot.com/s/flush%2520vlave?NCNI-5"><span style="text-decoration: underline;"><span>Home Depot</span></span></a></span></span><span> for about $20.00 and are relatively easy to change out.<span> </span>There are lots of instructional videos on the internet and it can save money if you give it a try.</span></li> </ol> <p><span><span>If you need a recommendation for a good plumber to take care of something you discover, please feel free to call me at <span style="text-align: left; color: rgb(0, 0, 0); letter-spacing: normal; font-size: 16px; text-decoration: none; background-color: transparent;">(505) 489-8504<span style="color: rgb(0, 48, 0); background-color: rgb(255, 255, 255);">.</span></span></span></span><br> </p> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-47723942272200282182018-09-04T08:01:00.001-06:002019-01-18T15:36:49.530-07:00Act Decisively<p><span><span>Whether it is hesitation or procrastination due to uncertainty, it can cost buyers by having to pay more for both the house and the financing.<span> </span>This is one of those markets where most of the experts expect interest rates and prices will continue to rise through 2019.<span> </span></span></span></p> <p><span>The National Association of REALTORS® reports there is currently a 4.2-month supply of homes for sale which is close to the same as last year's inventory.<span> </span>Normal inventory is considered to be a 6-month supply.</span></p> <p><span>If during the period you're waiting to buy, the price of the home goes up by 5% and the mortgage rate increases by 1%, the payment on a $275,000 home with a 95% mortgage could be $233.80 more each and every month.<span> </span>Over a seven-year period, the delay to purchase would total close to $20,000.</span></p> <p><span>To act decisively, you need good information; a confused mind will not generally make a decision.<span> </span>In today's market, you need to know exactly what price home you can qualify for and you need to know what kind of home you can expect for that price.<span> </span></span></p> <p><span>You'll want a housing and a mortgage professional you can trust to give you the information you need to make good decisions for yourself and your family.<span> </span>We'd like to be your real estate professional and can recommend a trusted mortgage professional.</span></p> <p><span><span>To get a better idea about what it may cost you for a home in your price range, use the <a class="FinApp.CostofWaiting" href="http://www.BetterHomeowners.com/FinancialApps/CostofWaiting.aspx?AccountId=O-mLz_Z81UuwqXW_LojklA&Auth=1" >Cost of Waiting to Buy</a> calculator.</span><span> </span>If you have any questions, call me at (505) 389-4316.</span></p> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-63337430860024296732018-08-28T09:15:00.001-06:002019-01-18T15:36:49.558-07:00Reduce Refinancing Costs<p><span>There is much more than a lower rate and payment to determine whether to refinance a mortgage.<span> </span>Lenders try to make refinancing as attractive as possible by rolling the closing costs into the new mortgage so there isn't any out of pocket cash required.</span></p> <p><span>The closing costs associated with a new loan could add several thousand dollars to your mortgage balance.<span> </span>The following suggestions may help you to reduce the expense to refinance.</span></p> <p><span><span><span>·<span style="font-size: 7pt;"> </span></span></span><span>Tell the lender up-front that you want to have the loan quoted with minimal closing costs.</span></span></p> <p><span><span><span>·<span style="font-size: 7pt;"> </span></span></span><span>Check with your existing lender to see if the rate and closing costs might be cheaper.<span> </span></span></span></p> <p><span><span><span>·<span style="font-size: 7pt;"> </span></span></span><span>Shop around with other lenders and compare rate and closing costs.</span></span></p> <p><span><span><span>·<span style="font-size: 7pt;"> </span></span></span><span>If you're refinancing an FHA or VA loan, consider the streamline refinance.</span></span></p> <p><span><span><span>·<span style="font-size: 7pt;"> </span></span></span><span>Credit unions may have lower closing costs because they are generally loaning deposits and their cost of funds is less.</span></span></p> <p><span><span><span>·<span style="font-size: 7pt;"> </span></span></span><span>Reducing the loan-to-value so mortgage insurance is not required will reduce expenses and lower the payment.</span></span></p> <p><span><span><span>·<span style="font-size: 7pt;"> </span></span></span><span>Ask if the lender can use an AVM, automated valuation model, instead of an appraisal.</span></span></p> <p><span><span><span>·<span style="font-size: 7pt;"> </span></span></span><span>You may not need a new survey if no changes have been made.</span></span></p> <p><span><span><span>·<span style="font-size: 7pt;"> </span></span></span><span>There may be a discount on the mortgagee's title policy available on a refinance.</span></span></p> <p><span><span><span>·<span style="font-size: 7pt;"> </span></span></span><span>Points on refinancing, unlike a purchase, are ratably deductible over the life of the loan ($3,000 in points on a 30-year loan would result in a $100 tax deduction each year.)</span></span></p> <p><span><span><span>·<span style="font-size: 7pt;"> </span></span></span><span>Consider a 15-year loan.<span> </span>If you can afford the higher payments, you can expect a lower interest rate than a 30-year loan and obviously, it will build equity faster and pay off in half the time.</span></span></p> <span style="font-size: 11pt;"><span>A lender must provide you a list of the fees involved with making the loan within 3 days of making a loan application in the form of a </span><span style="text-decoration: underline;"><span><span><a href="https://www.consumerfinance.gov/ask-cfpb/what-is-a-loan-estimate-en-1995/">Loan Estimate </a></span><span></span></span></span><span><span><span>and a </span></span></span><span style="text-decoration: underline;"><span><span><a href="https://www.consumerfinance.gov/ask-cfpb/what-is-a-closing-disclosure-en-1983/">Closing Disclosure Form</a></span><span><span>.</span></span></span></span><span> <span> </span>Every dollar counts, and they belong to you. </span></span><br> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-26379762311870862552018-08-21T08:01:00.001-06:002019-01-18T15:36:49.489-07:00Moisture & Mold<p>Moisture is mold's best friend and it thrives between 40 and 100 degrees Fahrenheit which is why it is commonly found in homes.<span> </span>Mold spores float in the air and can grow on virtually any substance with moisture including tile, wood, drywall, paper, carpet, and food.<span> </span></p> <p>Moisture control and eliminating water problems are key to preventing mold. Common sources of moisture can be roof leaks, indoor plumbing leaks, outdoor drainage problems, damp basements or crawl spaces, steam from bathrooms or kitchen, condensation on cool surfaces, humidifiers, wet clothes drying inside, or improper ventilation of heating and cooking appliances. </p> <ul style="list-style-type: disc;"> <li>Control the moisture problem</li> <li>Scrub mold off hard surfaces using soap and water or other cleanser; dry completely</li> <li>Do not paint or caulk moldy surfaces</li> <li>Discard porous materials with extensive mold growth</li> <li>Avoid exposing yourself or others to mold</li> <li>Periodically, inspect the area for signs of moisture and new mold growth</li> </ul> <p>The EPA suggests that if the moldy area is less than ten square feet, you can probably handle the cleanup yourself.<span> </span>If the affected area is larger than that, find a contractor or professional service provider.<span> </span></p> <p>Increasing ventilation in a bathroom by running a fan for at least 30 minutes or opening a window can help remove moisture and control mold growth.<span> </span>After showering, squeegee the walls and doors. Wipe wet areas with dry towels.<span> </span>Cleaning more frequently will also prevent mold from recurring or keep it to a minimum.</p> <p>A simple solution to clean most mold is a 1:8 bleach/water mixture. <span> </span>Since homes have thermostatically controlled temperatures and water is used all day long in the kitchen and bathrooms, the environment is conducive to mold.<span> </span></p> <p>See <span><a href="https://www.epa.gov/mold/ten-things-you-should-know-about-mold">Ten things you should know about mold</a></span> written by the EPA.</p> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-88196890186607940602018-08-14T08:02:00.001-06:002019-01-18T15:36:49.665-07:00What to Avoid Before Closing Your New Home<p><span>It’s understandable; you’re excited; you’ve found the right home, negotiated a contract, made a loan application and inspections.<span> </span>Closing is not that far away, and you are making plans to move and put personal touches on your new home.</span></p> <p><span>Even if you have an initial approval on your mortgage, little things can derail the process which isn’t over until the papers are signed at settlement and funds distributed to the seller.<span> </span>The verifications are usually done again just prior to the closing to determine if there have been any material changes to the borrower’s credit or income that might disqualify them.</span></p> <p><span>Most lending and real estate professionals recommend <span style="text-decoration: underline;">NOT</span> to:</span></p> <ul> <li><span>Make any new major purchases that could affect your debt-to-income ratio</span></li> <li><span>Buy things for your new home until after you close</span></li> <li><span>Apply, co-sign or add any new credit</span></li> <li><span>Close or consolidate credit card accounts without advice from your lender</span></li> <li><span>Quit your job or change jobs</span></li> <li><span>Change banks</span></li> <li><span>Talk to the seller without your agent</span></li> </ul> <p>The <span> lender and I are working together to get you into your new home.<span> </span>It’s understandable to be excited and feel you need to be getting ready for the move.</span></p> <p><span>Planning is fine but don’t do anything that would affect your credit or income while you’re waiting to sign the final papers at settlement.</span></p> <p><span>For more great tips and information, please visit our website at <a href="http://www.wyomingdreamteam.com">www.wyomingdreamteam.com</a>. Thanks and make it a great day!</span></p> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-36413340458346387832018-08-07T08:00:00.001-06:002018-08-13T16:48:43.707-06:00Rising Rates Affect the Cost Too<p>Mortgage rates have risen 0.5% in 2018 on 30-year and 15-year fixed rate mortgages and experts expect them to continue to increase. Buyers paying attention to the market understand the relationship that inventory has on pricing; when the supply is low, the price usually goes up. Rising interest rates can affect the cost of homes also. </p> <p>When interest rates go up, fewer people can afford homes. Lower numbers of buyers can affect the demand, which could cause prices of homes to come down. The question is how much do the interest rates have to go up to affect demand? </p> <p>As the rates gradually go up, the affect may not be noticeable at all except for the fact that the payments for the buyer have increased. </p> <p>A ½% change in interest is approximately equal to a 5% change in price. A $300,000 mortgage at 4.5% for a 30-year term will have a $1,520.06 principal and interest payment. If the mortgage rate goes up 0.5%, it would affect the payment the same as if the price had gone up 5%. The difference in payments for the full term of the loan would be $32,547. </p> <p>There are some things beyond buyers’ control, but indecision isn’t one of them. If they haven’t found the “right” home yet, it is understandable. However, when that home does present itself, the buyer needs to be ready to make a decision. If they are preapproved and have done their due diligence in the market, they should be able to contract before significant changes occur in the mortgage rates.</p> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0tag:blogger.com,1999:blog-5296056792341701907.post-52842695639317496412018-07-31T08:00:00.001-06:002018-08-13T16:48:44.204-06:00Replace It Anyway<p>If it's not broken, why would a homeowner consider replacing something as expensive as a toilet when there may be other things in the home to replace that provide more aesthetic appeal. Don't be too quick to ignore the functionality and the reliability of this basic convenience.<img src="http://www.betterhomeowners.com/image.ashx/NEzxL-Qlwk25nBMI3rAloA" width="250" height="250" style="width:250px; height:250px; float:right;" alt="toilet.jpg" processed="true" class=" alignright"></p> <p>The first rationalization might take place at the economic level. A water-saving model could easily pay for itself in a few years and then, there is the good feeling of participating in the conservation of our natural resources.</p> <p>Having to plunge a toilet more than once a week could motivate a homeowner to spend money on a replacement especially, if having made repairs to the flapper and fill valve didn't solve the issue.</p> <p>Maybe your existing toilet has ugly scratches that make it difficult to clean. Maybe there are cracks in the tank or bowl that you're concerned will develop into a leak at the worst possible time.</p> <p>The average cost to replace a toilet is around $400 with models ranging more and less based on the features and brands. Round toilet bowls tend to take up less room, are less expensive and better suited for children. Elongated bowls generally take more room, have more powerful flushing action, more comfortable, more stylish and cost more.</p> <p>Replacing the shut-off valve for the toilet could be a good thing to do while you're replacing the toilet. Generally, it is as old as the toilet and having a reliable valve that works could be very convenient in a future repair or emergency.</p> <p>There are a variety of videos on <a href="https://www.youtube.com/results?search_query=toilet+replacement">YouTube</a> that could give you the confidence to do it yourself or simply, to have a better understanding of the scope of the project</p> <br> Anonymoushttp://www.blogger.com/profile/13897485511025185279noreply@blogger.com0